The regulatory team is suggesting the client enter via the California market, in the high value fruit segment (e.g. strawberries and peaches).

The team also discovered the NOP list of approved pesticides. Also, products with the OMRI seal are highly respected by organic farmers. We believe the client’s products are already OMRI approved. They should attempt to get on the NOP list.

They should consider partnering with organic certification bodies.

1. We are still exploring the FDA’s regulations on pesticides, specifically in California.

2. We are curious about other teams’ recommendations surrounding entry point/strategy.

Californians are generally thought to be health conscious, and the development of markets for local and organic food has been going on long enough that awareness of the issue is high. I agree, however, that certification will be important.

I think the California route is the correct way to go as well. I know we talked last week about the possibility of Biofuels, but in such a cutthroat market, it would be difficult to convince farmers to switch to a "greener" alternative simply for the sake of being green. With the economic slowdown, they are going to be concerned most with maximizing profits through lowering their costs. I still have not seen any data to show that the yield increase from the use of microbes offset the additional costs over convention pesticides, fertilizers, etc.

Plus, a lot of the biocorn being grown is actually genetic engineered corn from Monsanto that is genetically resistant to many of the conventional pests without the use of pesticides.